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BAROID REPORTS 1992 NET INCOME OF $17.7 MILLION

 HOUSTON, Feb. 4 /PRNewswire/ -- Baroid Corporation (NYSE: BRC) a worldwide supplier of oilfield services, today announced that income from continuing operations for the year ended Dec. 31, 1992 was $17.7 million, or $.24 per share on sales of $614.5 million compared to $17.8 million or $.24 per share on approximately the same sales for the prior year. For the fourth quarter of 1992, income from continuing operations was $5.6 million, or $.08 per share on sales of $170.0 million compared to $2.2 million, or $.03 per share on sales of $167.0 million for the fourth quarter of 1991. The company recorded charges of $6.4 million during the fourth quarter of 1991 for the restructuring of its U.S. operations.
 Drilling fluids operating income increased 23 percent in the fourth quarter and 14 percent for the year ended Dec. 31, 1992, compared to the prior year despite relatively flat sales in the fourth quarter and a decline in sales for the year. The North American average rig count was 17 percent lower for 1992 compared to 1991. Improved penetration of international markets including Nigeria, the North Sea and the Middle East, and the effects of U.S. cost reduction measures contributed to the increases in operating income.
 The drilling services and products segment reported a decrease in operating income for the fourth quarter of 1992 and for the full year of 1992. Operating income decreased primarily due to lower pricing for directional services and lower operating margins on coring services and diamond bits. In anticipation of continued weakness in certain of the worldwide markets in which it competes, Sperry-Sun recorded in the fourth quarter of 1992 charges of $1.6 million primarily related to workforce reductions and facility closures.
 General corporate expenses increased in 1992 due to expenses incurred in the fourth quarter of 1992 associated with the acquisition of Sub Sea International Inc. and higher foreign exchange losses in the first three quarters of 1992. Lower debt levels and interest rates resulted in lower interest expense in 1992 versus the comparable 1991 periods.
 During 1992, the company elected early adoption of Statement of Financial Accounting Standards No. 109 (SFAS No. 109), "Accounting for Income Taxes." SFAS No. 109 changes the method of accounting for income taxes from the deferred to the liability method. The effect of adopting SFAS No. 109 retroactive to Jan. 1, 1992 was not material.
 Baroid's 1992 results are subject to final audit.
 BAROID CORPORATION
 Summary of consolidated Operations
 (In thousands, except per share data)
 Quarter Year
 Periods ended Dec. 31, 1992 1991 1992 1991
 Net sales:
 Drilling fluids $94,401 $91,266 $331,463 $349,907
 Drilling services and products 75,629 75,691 282,995 265,579
 Total 170,030 166,957 614,458 615,486
 Operating income:
 Drilling fluids 10,447 8,518 32,724 28,752
 Drilling services and products 3,930 6,555 14,617 24,648
 Restructuring charge -- (5,800) -- (5,800)
 Total 14,377 9,273 47,341 47,600
 Corporate expense, net (1,384) (1,552) (3,918) (2,778)
 Interest expense (3,595) (4,980) (15,291) (18,335)
 Total 9,398 2,741 28,132 26,487
 Provision for inc. taxes 3,481 1,465 9,337 8,591
 Total 5,917 1,276 18,795 17,896
 Minority interest 287 (956) 1,099 91
 Inc. from continuing operations 5,630 2,232 17,696 17,805
 Discontinued operations -- (17,796) -- (17,231)
 Extraordinary items -- 23 -- 556
 Net income (loss) 5,630 (15,541) 17,696 1,130
 Income (loss) per common share:
 Continuing operations $.08 $.03 $.24 $.24
 Discontinued operations -- (.24) -- (.23)
 Extraordinary items -- -- -- .01
 Net income (loss) $.08 $(.21) $.24 $.02
 Weighted average common shares
 outstanding 74,459 74,346 74,406 74,258
 -0- 2/4/93
 /CONTACT: Robert P. Wallace of Baroid Corporation, 713-987-5186/
 (BRC)


CO: Baroid Corporation ST: Texas IN: OIL SU: ERN

PS-LR -- NY070 -- 2994 02/04/93 12:41 EST
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Publication:PR Newswire
Date:Feb 4, 1993
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